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PayPal: Free Speech Union and UsForThem

Answer

I am grateful to the honourable member for her question on this topic, which I know has raised questions of free speech for many across the House. That is not a matter for the Treasury but I can shed light on the question from the perspective of underlying financial services regulation, for which the department is responsible.

The Payment Services Regulations 2017 – for which the FCA is the responsible regulator in the UK – include provisions relating to the termination of framework contracts. Under these provisions, a payment services provider is able to terminate contracts with two months’ notice if provided for within its own terms and conditions. In addition, a payment service provider may have the right to cease the use of a payment instrument on reasonable grounds relating to, among other things, fraud, money laundering or terrorist financing. Nothing of this nature appears to have been relevant in this case.

In addition, principle 6 in the FCA’s Handbook requires firms to pay due regard to the interests of its customers and treat them fairly. This might apply to the terms of a contract between a firm and its customers, and in particular to the processes a firm puts in place. There are also provisions relating to unfair contract terms in the Consumer Rights Act 2015.

As with any regulatory framework, the legislation is only one half of the story, with the interpretation and practice of individual firms and the oversight of supervisors being of at least equal importance. That is primarily an operational matter for the FCA. I will meet with all parties in the coming weeks and see whether legislative changes may be warranted.

Secondary information

Type

Written question

Reference

59946

Session

2022-23

Transferred

Yes

Subjects

PayPal Free Speech Union UsForThem

Link

View this Written question on www.parliament.uk